This invention relates in general to a biometric multi-purpose terminal, payroll and work management system and related methods, and more particularly, to a biometric multi-purpose terminal that employees may use after authentication with a bankcard and personal identification number (PIN) and/or with a biometric device, such as a finger print detector to check-in and check-out of work, to receive new work instructions or assignments, to review payroll details, to print a payroll stub, to execute financial transactions, to print a receipt of a financial transaction or to request a payroll advance based upon work hours accrued, to wire transfer funds from a bankcard to another bankcard or bank account, to relay alerts and messages from the work location to back office systems and operational managers, or to order and track equipment at work locations. The invention also relates to systems and methods that utilize such biometric multi-purpose terminals, including deposit of net pay in a bank account associated with each employee's bankcard so that the pay is immediately accessible by each employee.
Automated teller machines (ATMs) are typically owned by banks or banking networks. They are widely available and are frequently used to dispense cash. A customer inserts or slides a bankcard in the ATM so that a coded account number can be read from the bankcard. Through a financial network, such as Visa™/Plus™ or Mastercard™/Cirrus™, the ATM then communicates with the bank that issued the bankcard (the issuing bank) to see if the desired cash withdrawal exceeds the current balance in a bank account that is related to the account number. If not, the cash is dispensed and the card owner's account is debited in the amount of the withdrawal plus any service charge for use of the ATM.
The user of the bankcard is also provided with a personal identification number (PIN) or password that is associated with the account number. The PIN is entered at the request of the ATM prior to authenticating both the account number and the PIN. In the event that the bankcard is lost, the finder will not be able to withdraw funds since he/she lacks the PIN necessary to complete any ATM transaction.
ATMs provide a variety of account transactions. The user may withdraw cash from user's checking account, savings account or as an advance from a line of credit, such as a credit card account. The user may also transfer funds between accounts, such as from a checking account to a savings account. In some instances, the user may ascertain the balances in accounts associated with the account number. However, the principal use of ATMs continues to be cash withdrawal.
Local check cashing, payday loan and wire transfer service providers, also referred to as alternative financial service providers, compete with banks and the ATMs by providing financial services for their profiled customers. Profiled customers have previously signed a signature card or have otherwise previously confirmed their identity with a local alternative financial service provider, or with a network of such alternative financial service providers. Alternative financial service providers tend to operate locally, instead of in nationwide like the banking networks. The alternative financial service providers compete with banks and ATMs by cashing checks, particularly payroll checks, for its profiled customers. A typical fee for such a transaction is about 1.6 percent of the amount of the payroll check. For higher volume transactions, the income from check cashing can be quite substantial.
The customers of alternative financial service providers are typically lower-wage local residents who do not have checking or savings accounts at a local bank, and therefore rely on an alternative financial service provider to convert their paychecks into cash. Since they do not have a bank account, they do not have a bankcard and cannot use an ATM. There is therefore a business opportunity for banks to acquire new customers by providing the functions performed by alternative financial service providers in cashing payroll checks and money orders.
Wire transfer of funds is another function typically performed by one bank to another bank. This function is not normally available at alternative financial service providers. As a result, those individuals who use alternative financial service providers for their financial affairs often use a company that specializes in wire transfers, such as Western Union or American Express Company. The fees for providing wire transfer service at these companies are generally around 4 to 6.5 percent, depending upon the amount transferred. For example, a typical current fee for wire transferring a minimum of $200.00 is about $13.00. These fees are graduated upwardly for larger wire transfers; such as to about $200.00 in fees to wire transfer $5,000.00.
Many of the afore-mentioned lower-wage earners send money to their relatives in the United States or abroad. Among the other more significant users of wire transfers are travelers and the parents of college students because immediate access to funds is often desired or needed. Thus, if wire transfers could be accomplished relatively inexpensively, additional customers could be obtained who are likely to also use the other available financial services. This presents yet another business opportunity.
Many such lower-wage earners also visit the alternative financial service provider to ask for a short term loan advance, which they usually pay off by the next payday. Such short term loans, also referred to as a “Payday Loan” advance, are sometimes at predatory interest rates ranging from 1 to 1.5 percent per day. This interest rate translates to and annual percentage rate of 365 to 520 percent, or more depending upon the compounding of the interest.
Larger employers usually develop or purchase a payroll system. Often, the payroll system is part of a larger computer system that records many different types of business transactions. These payroll systems are quite complex since they must deal not only with time and attendance, but also with a plethora of potential deductions. Deductions generally include federal income tax, FICA, state income tax, in some instances county, township or city tax, health insurance, dental insurance, contributions to retirement plans, contributions to profitability or stock purchase plans, union dues, alimony and the like. For businesses with employees in more than one state, the complexity is usually compounded by differences in the state and local tax laws.
However, the real inefficiency in payroll systems is in keeping track of the time of hourly employees. Customarily, timesheets are collected, the payroll is processed and payroll checks are cut and distributed to the employees. Payroll is often centralized for employers with more than one location. This means that timesheets are express mailed to where the payroll is processed, such as at the corporate headquarters. The payroll checks must then be issued and express mailed back to all of the employee locations. This process is expensive, cumbersome and time consuming. Thus, payroll cannot practically or economically be done on a daily basis is such systems. Most employers therefore pay their employees once every two weeks, or once a month.
Employee turnover is another significant expense. The payroll database must frequently be updated to add new employees and to delete former employees, including all pertinent employee information. The hiring process to attract and bring in new employees to replace departing employees is particularly expensive.
On the other hand, employers can increase employee loyalty and reduce such payroll and hiring expenses by paying wages more frequently, such as on a weekly basis, or even on a daily basis, and by providing payroll advances based upon the accrued pay at the time that the payroll advance is sought. Research indicates that lower-wage employees will frequently change jobs for as little as $0.25 per hour increase in wages. This is particularly a problem for employers in labor-intensive industries, such as janitorial services, hotel-motel service companies, fast food franchises and the like.
Research also indicates that many employees will actually work for somewhat less compensation than is available in the competitive marketplace if they are paid more frequently. This is because many employees operate from paycheck to paycheck, and some employees have difficulty surviving financially until the next paycheck. A more frequent paycheck is therefore of considerable value to such employees since it reduces the pay cycle. More frequent wage payment and payroll advances also operate as a disincentive for many employees to change employment to a different employer with longer wage payment intervals.
Research also indicates that many employees would feel more loyal to their employees if their employers offered short term loans which would be paid back by the next payday. This means that low wage employers offering payday loan advances, at a discount compared to the prevailing rates charged by alternative financial service providers, could increase their employee retention rates. That is, such employers could enjoy less employee turn over.
Another problem with prior art payroll systems is fraud resulting from buddy punching. This is where an employee who may be late, leaves early, or will be absent on a particular day has a buddy or friend punch his/her timecard in and/or out. Such fraud remains a significant problem in many labor-intensive industries where large numbers of employees check-in and checkout each workday. Various biometric systems that verify the identity of the person by his or her physical characteristics, such as the retina of the eye or a fingerprint, have been proposed and implemented. If an employee is sensitive about checking in and checking out through biometric devices, such as a fingerprint reader, he/she may use the bankcard reader instead.
Many lower-wage employees, such as those that clean commercial buildings and/or private property, perform their work after normal business hours. Thus, if an owner or manager of the property wants to change the work to be performed, he/she has to stay late, leave written instructions, or call the manager of the cleaning services. Even if the employee receives the work changes, the employee may not be able to perform the work because of union rules, the scope of the work services contract or the like. In addition, the desired work change may involve a different type of work that is compensated at a different pay rate. The property manager may have to contact the supervisor of the employee to renegotiate the contract, and then try to contact and inform the employee. These cumbersome and time consuming approaches could be avoided if the employee's supervisor and/or the property manager had a better way to communicate the new work instructions or assignment to the employee, such as by the employee receiving the instructions or assignment upon checking in to work.
Quality inspectors routinely do inspection of the work performed at different property sites. These audits are typically reported by paper or electronically, as by computer or hand-held device. Thus, the inspector usually sends the quality report to a remote location by faxing a paper report or by using a modem to link to a database. The process of sending the report could be made more efficient if the inspector could use the same electronic terminal to send the quality report that the employee uses to check into or out of work.
Even if the employees are paid electronically by deposit to a known bank account number, laws in most jurisdictions require that the employer provide a copy of the payroll stub to the employee that lists at least the gross pay, the deductions and the net pay. Supervisors, payroll administrators and human relations personnel frequently receive inquiries about the payroll stub, particularly where different job assignments have different pay rates. The ability to print out a detailed payroll stub, such as at the same electronic terminal that the employee uses to check into or out of work, including the different pay rates for the different types of work would be highly effective in reducing these time-consuming inquiries.
Most commercial biometric clocks give only test feedback when an employee punches in or punches out. Thus, if a user's fingerprint is not matched, the system displays a text message telling the user that access was denied, or emits an audible tone, such as a high pitch buzzing sound, that can be annoying.
Accordingly, there has been a long felt need for an improved payroll and work management system that includes multi-purpose terminals with biometric confirmation of the employee's identity. Furthermore, there has been a long felt need for incorporating numerous functions into such a biometric multi-purpose terminal, such as checking in and out of work, receiving work instructions and assignments at the terminal, printing universal payroll stubs at the terminal, executing financial transactions, requesting and obtaining payroll loan advances, receiving work quality audits, relaying alerts and messages from the work locations, ordering and tracking equipment at the work location, depositing pay in a bank account associated with the employee's bankcard so that the pay is immediately accessible, alerting that key employees or an insufficient number of employees have not punched in for work, and alerting management employees of any work-related injuries or unforeseen incidents.
A general object of the present invention is therefore to provide a system that offers hourly workers a turnkey financial, communication, e-commerce, payroll and work management solution that is economically beneficial for them as well as for their employers.
Another object of the present invention to provide an electronic payroll system and methods therefor wherein an electronic terminal reads biometric information that uniquely identifies the employee and which is then communicated to a computer for authentication.
A further object or the present invention is to minimize the payroll fraud resulting from buddy punching through the use of a biometric multi-purpose terminal to read biometric information for authentication.
Yet another object of the present invention is to use the APW device as a field alert system to alert managers when key employees have not punched in for work as scheduled, or when the number of employees punching in at a work site is below a certain minimum.
Still another object of the present invention is to provide an APW device with an incident reporting system, such as when an employee has a work related injury or when an unforeseen incident occurs at the work site.
A still further object of the present invention is to provide an APW device that functions as a biometric financial terminal to enable employees to request a payday loan advance based upon accrued hours worked and to receive the payday loan funds credited to their bankcards.
Another object of the present invention is to provide an APW device that functions as a biometric financial terminal to provide employees with the capability of transferring funds from their bankcard to a secondary bankcard or to another bankcard.
Yet another object of the present invention is to provide an APW device that can operate as a universal payroll stub printer, including for remotely based employees, in conformance with the American Payroll Association (APA) payroll stub format, and regardless of the payroll headers or fields needed or required.
Another object of the present invention is to use the bankcard and PIN and/or a biometric detector, such as a fingerprint detector and comparator, as work attendance devices by using the times of authentication as work check-in and work checkout times.
A further object of the present invention is to eliminate the inefficiencies in issuing and distributing payroll checks to employees by periodically crediting net pay to a bank account associated with the bankcard that is also used to check-in and check-out of work and by enabling the employees to print their paycheck stub at the electronic terminal, or at any supported ATM terminal.
Yet another object of the invention is to provide two-way messaging relating to work assignments, including acceptance of work assignments at check-in and confirmation that work assignments have been completed at checkout at the electronic terminal.
Another object of the present invention is to provide alerts from an APW device, especially to managers, such as when an insufficient number of employees check in, when budgets may be exceeded or when security issues arise.